Life is unpredictable. Job changes, roommates relocate, relationships end, and rent becomes too much.  All of these scenarios may have you looking for a new apartment before your current lease is up. 

In some situations, your landlord may be sympathetic. But breaking your lease – considered a legal binding contract – can have some real consequences.  At minimum, you could be required to pay the remainder of your rent for your lease term or even lose you security deposit. But in some cases, you may face harsher repercussions.

Here are some of the more serious consequences you could face.

Legal Action

Because leases are legally binding agreements, your landlord can take legal action to recover any outstanding rent payments within your lease terms. Even if you incur a job loss, illness, or divorce – all of which can severe limit you income – you can still be held accountable for rent payments.

A ‘tenant at will’ -- a term used to describe a renter without a lease – may also be penalized for leaving. Some states require renters to give a written notice of 30 days or one full rental period in advance, whichever is longer.

Credit Report

Your landlord may also report your lease break to the credit bureau, causing your credit score to drop. This could impact your chances of renting or owning a new place to live, car, or any other major purchase down the line. Any legal judgment or finding against you stays on your credit report for seven years.

Difficulty Securing a New Place
Rents are rising and the median age of first-time home buyers is older than a generation ago, according to the National Association of Realtors. That means more of us are finding ourselves having to rent for longer than we may like. You may find it harder than you thought to find a new place to live after you break your lease.

Besides risking your credit score, your new landlord may ask for contact information for the last few landlords you rented from. Indications that you broke your lease, or failed to pay out your rent could cost you your new place. This can be especially challenging for if you have to rent again.

Worried? Those are just worst case scenarios.

Try working things out

Many times landlords are sympathetic to changing situations. Offering to help your landlord to find a new renter could also ease the blow.

The quicker your landlord is able to secure a new tenant, the less likely your landlord may impose penalties.

In any case, it helps to be honest about your situation to your landlord and give him or her as early notice as possible of your plans.